Influence of ownership structure on financial condition of business: comparison of family and non-family companies

Abstract

Description of the goal, tasks and main results: the goal of current thesis is to examine the impact of familiness on performance of business, base on quantitative examples. Main tasks are to ascertain difference in performance of family and non-family businesses, to examine impact of Long Term Orientation concept on family business, through dependence of performance on evolution of operational financial ratios, to provide managerial suggestions based on results obtained. In a quantitative part the author provided descriptive statistics, and has checked three hypothesis, two of which are authentic. Based on results of this work the author makes conclusion that difference between family and non-family businesses could be quantitatively measured based on financial reporting of companies, this is not obvious conclusions, since it could be a starting point for objective analysis of family companies; prognoses of performance for family business could be done by observing more accurate profit margin and turnover of company. It also allows to speak about two specific features of family companies: continuity for family business, which allows to predict its performance; family companies have other than non-family asset structure.